There are things we all do as human beings that have nothing to do with money. We do them because they feed our soul, hopefully bring us joy and mostly because we feel it is the right thing to do. Your creative business probably does all those things for you too. However, that is not its purpose. Your business' purpose is to make money and your mindset should PRIMARILY be based on analyzing the cost-benefit of EVERYTHING your business does.
You are investing your time and money every day, all day. The investment has to yield a definable return, regardless of whether that return can be quantified financially or not. We are all taught as children to not be selfish, to not think of what's in it for me. However, as a business owner, that is the ONLY way you can think. Quite literally, your job is to take 2+2 and make it 5.
The cost-benefit mindset will also help you embrace the concept of finite resources. Every business on the planet has finite resources — some much more than others, but still. You only have so much time and money at your disposal at any one point. A dollar or hour spent one place NECESSARILY means that it will not be devoted someplace else. Therefore, if you are to make 2+2=5, your goal has to be to use those resources as efficiently and effectively as you know how. That means placing a value on all that is being done and why. Usually this mindset stops your ego from getting in the way. For instance, where you spend money to promote the business will be where you get the biggest bang for your buck, as opposed to where you think you have to be. Spend thousands advertising on the Knot, WeddingBee, shelter magazines, etc. or use the same money to photograph your work in a relevant way with someone (or some place) that can take advantage of the images. Spend an hour doing the books or an hour drawing. Keep an employee in a job because they are "loyal", but incompetent, or find a place where they can really help you (including working for someone else).
You certainly don't have to take cost-benefit analysis to its logical extreme — you are an artist; but you do have to have a sense of proportion and profitability in mind. After all, the last thing you or your business needs is to have 2+2=3.
{ 3 comments }
Love this post! For me – 2+2 equals 6, 8, 10, 12…the computation is endless :). I love what I do, but don’t get it twisted – I’m in it to make money, support my family and the lifestyle I love.
Sometimes, people get a bit “esoteric” about the connection between their businesses, their love for it and the bottom line of $$$. Don’t – realize and understand it is what it is…
I read the title and all that came to my mind was “Honey and don’t you know it” I do love my job but yes ultimately I am doing it to make a living.
This has always been a hard one for me…placing $$$$ for time….while balancing the desire to provide excellent customer service. It comes down to boundaries…the “people pleasers” dilemma. Thanks for the reminder.